Sat, September 28

Trading Strategies Amid Bearish Market Followed by BTC Long-Term Investors

Trading Strategies Amid Bearish Market followed by long term investors Bitcoin News
  • 68.54% of Bitcoin has been dormant for a year.
  • Sources reveal investors favor long-term Bitcoin holdings for value.

In the cryptocurrency realm, a significant trend emerges as more investors embrace a patient approach. A substantial portion of Bitcoin, about 68.54% of the total supply, has remained dormant for at least a year, reflecting a preference for a long-term investment strategy.

Data from Glassnode, a blockchain analytics firm, reveals that 13.3 million Bitcoin, valued at $388.7 billion, have been inactive for over a year. This shift demonstrates a profound change in investment behavior, potentially reshaping the crypto market.

Bitcoin Supply Chart, Source: Glassnode

Bitfinex analysts note a strong bias toward holding Bitcoin long-term. While some dormant supply may include lost coins, a considerable amount represents a deliberate choice by investors. This trend reached a peak of 69.2% recently.

The inactivity duration shows that 56% of the circulating supply has been dormant for at least two years, and an impressive 40% for a minimum of three years. This underscores a shift in sentiment and a belief in BTC’s lasting value, despite market volatility.

It’s worth noting that this data doesn’t fully capture BTC’s evolving role. Financialization has introduced innovative investment options like CME’s futures and ETFs, enabling exposure without direct ownership.

According to CoinMarketCap, BTC Price currently stands at $29,369 with a high of 1.20%. And the trading volume is up 67.61%, resting at $14,429,775,835.

In conclusion, the rise in dormant Bitcoin indicates a broader shift towards patient long-term investment, driven by a belief in Bitcoin’s enduring value.

A creative writer with a flair for storytelling and a deep interest in cryptocurrencies and blockchain technology.